Despite austerity measures, the economic downturn and rocketing living costs, rental prices continue to rise – which could be driving consumers into d…
Despite austerity measures, the economic downturn and rocketing living costs, rental prices continue to rise – which could be driving consumers into deeper debt.
According to Endsleigh, prices for tenants have increased throughout the UK, with London proving to be the most expensive location for people looking to let a property, with monthly payments of £1,372 almost doubling the national average of £688.
A report by the letting agents service provider found that since 2009, the average cost to live in a rented property has risen by four per cent, which is above the rate of inflation for 2010, which fell to lows of three per cent.
People who pay their landlords to live in London have seen their monthly charges rise by eight per cent over the period of the economic downturn.
Scotland, however, proved to offer value for money, with the average tenant having to spend just £299 on rent per month, which is 43 per cent of the national average.
Throughout the UK, Stirling, Stafford and Lincoln are all cheap areas for people who have not yet jumped onto the housing ladder.
Endsleigh's head of business development Carlos Thompson said tenants may find a crumb of comfort in the fact that two-thirds of landlords will not be raising their rental prices this year.
And people living in landlord-owned dwellings may be in a better position than their householding counterparts when interest rates rise, as chief executive of UK Asset Resolution Richard Banks told the Guardian this increase could result in repossessions.
By Joe White